Bad data affects us all and has a huge impact on customers and eventually on the bottom line. And, when an eCommerce site has poor data it will lead to checkout frustrations and loss in revenue.
So, what causes "bad" data?
There are two main causes of bad data:
1. Incorrect data input
Incorrectly inputting data when completing form-fills can lead to erroneous data being captured against customer records.
eCommerce checkout should be optimized to make form fills short and easy to complete, and a mechanism should be in place to automatically correct the input. As research shows 28% of respondents abandon their cart due to the checkout process being too long/complicated (Baymard Institute).
2. Data degradation
Failing to update and enhance existing data in eCommerce MDM systems can also lead to data becoming inaccurate and unfit for use.
For example, data degradation caused by a ‘dirty’ database may include duplicate records, incomplete or outdated data, and non-standardized entries to name a few. This all becomes an issue when it comes to sales, marketing, communications and operations. According to ebizQ, corporate data grows at 40% a year, and 20% of the average database is dirty.
Why you need accurate data
Without accurate data, the biggest impact is on an organization’s bottom line. It is like flying an aeroplane when sensors are providing incorrect information, and one can assume that the result can only be catastrophic.
Inaccurate data affects brand loyalty and customer retention, as Voxware found 29% of respondents will abandon shopping with a retailer altogether if they receive an incorrect delivery just once. And, it negatively impacts revenue and business growth. Research by Gartner found that a strong organization can generate up to 70% more revenue than an average organization purely based on the quality of its data.
eCommerce platforms that fail to improve their data quality will inevitably fall behind, and I want to highlight the kind of functionality eCommerce providers may consider embedding in their offering to ensure high quality data.
eCommerce leaders should implement software functionality that can verify data upon entry, as this will reduce inaccurate data capture. And, predictive type-ahead address verification technology makes checkout simpler by generating address data based on inputted characters and the end users’ IP address in real-time.
Integrated technology should also maintain existing records by continuously updating and enhancing data, plus eradicate the need for manual correction.
The Loqate Global Partner Program provides access to the best global address data available on the market. You can find out more about it here.
If you’d like to discuss how Loqate can enhance your data quality by becoming a partner, get in touch.
